Remember that scene at the beginning of It’s a Wonderful Life, where people are all desperately trying to get into the bank because if it fails before they get in, they lose their money? That’s what the FDIC prevents.
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I have no idea just how much was insured at Washington Mutual, and I have no idea what the position of the FDIC was at the time. I literally know nothing about that era.
Probably shouldn’t be making sweeping claims then.